Fiscal Council: Czech economy will need more austerity measures

Czechia’s public finances are markedly imbalanced, the Czech Fiscal Council said on Thursday. In a report on the long-term sustainability of the public finances, the independent expert body said the government’s previously announced austerity measures, including pension reform, could have a positive impact – however, they will need to be followed by increased consolidation in future.

The council said the imbalance in the public finances was in part due to irresponsible steps taken during the pandemic and measures in response to the rise in fuel and energy prices caused by Russia’s aggression against Ukraine.